ABSTRACT
As the sense of crisis recedes with the fall of oil prices, that question has become even more acute. The answers will depend on the behavior of many institutional and individual actors in both the public and the private sectors at the national, state, and local levels. Federal and state policies can critically shape eventual outcomes by making information available, encouraging innovation, and serving as a broker to facilitate cooperative efforts. Such policies to induce new behavior are complemented by policies designed to reduce the broad use of resources and energy systems seen as having unacceptable societal consequences. Success in achieving even more efficient use of energy hinges not only on the effectiveness of broad-brush programs and on the inducements of the price mechanism, but also on the ability of state-level agencies to stimulate the adoption of innovative techniques by users of energy services. Unfortunately the typical state energy agency has serious drawbacks as an innovation promoter.
